Key Shareholders might want to read these 2 articles below.
Windfall seen in shale oil and gas
June 12, 2013
Brian Robins Explore all there is to know. Australia Queensland Cooper Basin Shale oil and gas reserves.
Australia could reap a significant windfall from its shale oil and gas reserves, which could be as much as 10 times the existing known reserves, according to a US government report.
The report, by the US Department of Energy, found there were sufficient shale oil and shale gas reserves globally to fuel demand for several years, at least, on present estimates.
As much as one-third of all potential gas reserves globally could be recoverable from shale and around 10 per cent of oil, the report argued.
For Australia, the prospect of significant oil to be tapped from shale reserves holds significant promise, amid dwindling domestic oil reserves, which has resulted in a surge in imports.
The study found Australia has an estimated 437 trillion cubic feet of recoverable shale gas reserves, ranking behind Mexico, but ahead of South Africa. This is 10 times the existing identified natural gas reserves in Australia of 43 trillion cubic feet of gas. Perhaps more importantly, the report put Australia's reserves of shale oil at significantly higher than existing oil reserves, at a time when Australia's oil imports continue to rise. It estimated shale oil reserves at 17,500 million barrels, which is substantially higher than existing known reserves of 1433 million barrels.
Australia's annual oil production is running at 192 million barrels, according to the report.
Tapping Australia's reserves of coal seam gas has resulted in the development of several gas export projects in Queensland, although the emergence more recently of shale gas in particular has cut off some of the growth options of these projects.
In this context, boosting reliance on oil produced from domestic shale reserves could have significant impact on the local economy, helping to boost Australia's energy security.
The report noted Australia could be an early developer of its potential shale reserves.
The actual level of economically recoverable shale oil and shale gas is likely to be smaller than the estimated recoverable reserves, since it depends on product prices and the cost of extraction and processing.
Australia has several basins of potential shale oil and gas reserves, the largest being the Canning Basin in the north of Western Australia, the Georgina and Beetaloo basins in the Northern Territory and western Queensland, and the Cooper Basin in central Australia.
Both the smaller Perth Basin and the Maryborough basin, on coastal Queensland, host potential reserves as well, although they have been less explored. Both are the nearest to population centres, although both occupy smaller areas.
''Of the six assessed basins'' in Australia, the report noted, ''the Cooper Basin, Australia's main onshore gas-producing basin, with its existing gas processing facilities and transportation infrastructure, could be the first commercial source of shale hydrocarbons''.
''Santos, Beach Energy and Senex Energy are testing the shale reservoirs in the Cooper Basin, with initial results from vertical production test wells providing encouragement for further delineation.''
The study estimates China has the largest shale gas reserves, at more than 1115 trillion cubic feet of recoverable gas, while for shale oil, Russia has the largest reserves at an estimated 75 billion barrels.
Australia’s shale gas riches By Mike King - June 12, 2013
Australia ranks in the top ten countries for shale gas resources, according to a report by the US Energy Information Administration.
With an estimated 437 trillion cubic feet of shale gas, Australia comes in at seventh place, ahead of South Africa, Russia and Brazil, but behind the US, Canada and Mexico. China has the largest estimated shale gas resources with 1,115 trillion cubic feet.
The US Department of Energy estimates that global shale resources are vast enough to cover more than a decade of oil consumption. Russia has the largest resources of shale oil, with 75 billion barrels, with the US in second with an estimated 58 billion barrels of shale oil.
Despite other countries’ massive resources, only the US and Canada are actually producing oil and natural gas from shale formations in commercial quantities, according to the department. Australia could be one of the next countries with commercially viable shale oil and gas production.
The majority of Australia’s shale gas is held in four main basins. The Cooper Basin, which has been our main onshore gas producing basin since the 1960’s, could be the first to be developed, because it already has the infrastructure in place. Santos Limited (ASX:STO) and Beach Energy (ASX:BPT) are the two primary players in the Cooper Basin.
The Canning Super Basin in Western Australia is currently being explored by a number of companies including Buru Energy Limited (ASX:BRU) and New Standard Energy (ASX:NSE), who hold most of the leases.
Other prospective shale gas basins include the Perth Basin in Western Australia, the Maryborough Basin in Queensland, and the Beetaloo and Georgina Basins in the Northern Territory.
With an estimated 17.5 billion barrels of shale oil and huge shale gas resources, Australia could see significant windfalls from the energy sector, which could take over as the resources boom declines.
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